Bangkok Post John Polderman Column.

Byline: John Polderman

Oct. 4--Nearly all non-Thai nationals not visiting Thailand as tourists have to deal with visas and work permits at some stage. If you are lucky enough to be employed by a large corporation or if your employer has BoI status, a foreigner can visit the One Stop service centre in Bangkok, and all the paperwork, copies, stamps and so on can be obtained in a few hours.

If you are not fortunate enough to meet the financial capital or BoI criteria, you have to go the "normal" route. Without wishing to dwell on the bureaucratic processes and the time consumed, and I have heard some real horror stories, there is an important aspect to these processes, which should be highlighted.

A large number of potential foreign investors do not meet the BoI or financial capital criteria. They are the SMEs of the economy. They may be a small office of a multinational or individual entrepreneurs. They form the backbone of an economy.

Notably for this sector, Thai requirements are burdensome, and do not seem designed to encourage investment. There is a requirement to employ at least seven Thai nationals within six months, starting with four local employees. Very few start-ups begin from day one with such a payroll burden. There is a requirement that the foreigner pays himself at least a government-specified monthly salary, which does not appear healthy for the cashflow of a new company. Minimum capitalisation at two million baht for a company employing a foreigner also appears unrealistic.

There is also the requirement that there be at least seven initial shareholders and, unless the foreigner is a US national, Thai shareholder(s) must hold at least 51 percent of the shares.

There are, however, ways to overcome these obstacles. There is another aspect to the application procedures, which further highlights the need to review the whole process. This is the aspect of location. All work permits are tied to a location where the work is to be performed. How does one deal with this in the modern, high technology economy, which Thailand wants to join? With a mobile phone and a laptop I can do much of my work anywhere. I ...